Restructuring policies to be tweaked in Jubilee budget: DBS

The painful measures will be more targeted.

The government will use Budget 2015 to tweak some restructuring policies and make the measures more targeted and less painful, a report by DBS revealed today.

DBS notes that specific measures to help certain industries raise productivity may be on the cards, as prodcutivity growth continues to languish halfway through the ten-year process.

This year's budget may particularly focus on the construction sector, which has been a drag on overall productivity growth.

"Incentives to encourage pooling of resources amongst construction companies may lead to greater efficiency and higher productivity," DBS stated.

The budget is also expected to help local companies enhance their revenues, and measures to facilitate internationalisation of local businesses are ex[ected to be rolled out.

"Rather than taking the carrot-and-stick approach of starving companies of foreign workers and subsidising the costs of investment in technology, the focus going forward could be on helping local companies improve their revenues," the report noted.